Moncler has had its share price target cut to €46 by Jefferies, after what the US bank saw as another unconvincing quarter from the super-posh luxury clothing group.
Sales of the core brand slowed again to follow a surprise dip in the second quarter, notes Jefferies, with management having no answer other than to highlight broader industry challenges.
“A lack of reassurance on the fourth quarter to date (besides an improved Golden Week) suggests consensus [forecasts] might need to cut by mid-single-digits.”
Third-quarter sales were challenged in all regions adds the bank, with group revenues of €635 million around €10 million below consensus.
Regionally, for the namesake Moncler brand and across wholesale and retail, this amounted to Asia/Pacific being down 2%, Europe/Middle East down 3% and the Americas down 6%.
A hold is in the investment view with the new €46 price target trimmed from €48 against a market price of €51.66.